Home » Discussion 4 | ACC 557 – Financial Accounting | Strayer University

Discussion 4 | ACC 557 – Financial Accounting | Strayer University

 

You are Chief Financial Officer (CFO) at Intrepid Investments (II). Your boss, Ellie Earner, is CEO of II. EE asks you to look into what potential liability, if any, II may have for her actions over last weekend so she may discuss this with an attorney.

It seems EE was feeling rather generous after watching her granddaughter, Annie Actress (AA), perform well at her district high school speech and debate competition. EE scratched out on a paper napkin that II would pay AA a $10,000 college scholarship from II’s petty cash account if AA continued to excel at speech and debate throughout her high school career. AA needed money now, though, so she gave the document to Carl Classmate (CC) for $7,000. CC then gave the document to Sandra Stranger (SS) for $5,000.

AA continued her excellence, and AA told EE she lost the napkin. EE verbally ordered II to pay AA $10,000.  

Inform EE of what liability, if any, II may have to pay AA so EE may discuss further with an attorney.Y







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